The SALTcast

In this conversation, Ryan Johnson, Jason Parr, and Paul Johnson discuss the complexities of sales tax and the importance of compliance. They emphasize the need for businesses to understand their sales tax responsibility and the various terms and concepts related to sales tax, such as nexus and taxability. The conversation highlights the significance of conducting a thorough risk analysis and collaborating with experts to ensure compliance. The speakers also discuss the different remedies available for businesses to address sales tax liabilities, including voluntary disclosure agreements. They stress the value of seeking second opinions and collaborating with professionals to make informed decisions. The conversation concludes with a reminder of the resources available on the Peisner Johnson website and the importance of educating businesses about sales tax.

Takeaways:

 - Understanding sales tax compliance is crucial for businesses to avoid penalties and liabilities.

 - Conducting a thorough risk analysis and collaborating with experts can help businesses determine their sales tax responsibility.

 - Properly understanding terms like nexus and taxability is essential for accurate compliance.

 - Businesses should consider different remedies, such as voluntary disclosure agreements, to address sales tax liabilities.

Chapters:

00:00
Introduction and New Year's Update

01:05
The Complexity of Sales Tax

02:23
Getting Started with Sales Tax Compliance

03:19
Identifying Sales Tax Responsibility

04:46
Understanding Nexus and Risk Analysis

08:01
The Importance of Proper Nexus Study

10:25
Taxability and Risk Analysis

13:48
Remedies for Sales Tax Compliance

17:12
Amnesty Programs and Second Opinions

19:02
Collaboration and Peace of Mind

23:40
The Importance of Nexus Analysis

25:20
Educating Businesses for Informed Decisions

26:09
Resources and Conclusion

Summary

In this conversation, Ryan Johnson, Jason Parr, and Paul Johnson discuss the process of becoming sales tax compliant. They cover topics such as understanding  what is covered in sales tax compliance, recognizing the need for compliance, conducting a risk analysis, implementing compliance measures, considering the timeline for implementation, implementing an automated solution, simultaneously registering and implementing, switching providers and outsourcing, and more.

If you would like to discuss what is next for you with sales tax compliance come have a chat with us: https://peisnerjohnson.com/whats-next/

Takeaways

• Sales tax compliance involves understanding the changing landscape of sales tax laws and regulations.
• Recognizing the need for sales tax compliance is the first step in the process.
• Conducting a risk analysis helps identify the states where you have a responsibility to collect and remit sales tax.
• Implementing sales tax compliance measures can be done through a DIY approach or by outsourcing to a professional service provider.
• The timeline for implementation depends on the complexity of your business and the resources available.
• Implementing an automated solution for sales tax compliance can streamline the process and ensure accurate tax collection.
• Simultaneously registering and implementing compliance measures is recommended to avoid potential liabilities.
• Switching providers or outsourcing sales tax compliance can provide greater peace of mind and efficiency.
• It is important to regularly review and update your sales tax compliance measures to stay compliant with changing laws and regulations.

Chapters

00:00
Introduction and Holiday Banter

03:41
Understanding Sales Tax Compliance

08:09
Recognizing the Need for Sales Tax Compliance

10:40
Conducting a Risk Analysis

12:05
Implementing Sales Tax Compliance

16:48
Considering the Timeline for Implementation

20:25
Implementing an Automated Solution

25:18
Simultaneously Registering and Implementing

28:37
Switching Providers and Outsourcing

36:38
Summary and Call to Action

In this podcast episode, the hosts discuss sales tax planning for 2024. They emphasize the importance of including sales tax in overall tax planning strategies and highlight how sales tax can significantly impact a business's financial success. The conversation covers topics such as nexus and business operations, reviewing nexus for the next year, taxability of goods and services, exemption certificates, and choosing the right sales tax return process. The hosts provide valuable insights and encourage listeners to reach out for further assistance.

Takeaways

 - Sales tax planning is crucial for businesses to ensure financial success and compliance.

 - Businesses should regularly review their nexus and consider the impact of their operations on sales tax obligations.

 - Understanding the taxability of goods and services is essential to avoid under or overtaxing customers.

 - Managing exemption certificates effectively can help businesses avoid audit issues.

 - Choosing the right sales tax return process can simplify compliance and reduce frustration.

Chapters

00:00
Introduction and Podcast Structure

00:50
Importance of Sales Tax Planning

02:51
Nexus and Business Operations

06:14
Reviewing Nexus and Planning for the Next Year

08:21
Taxability of Goods and Services

12:02
Exemption Certificates
13:09
Choosing the Right Sales Tax Return Process
20:58
Conclusion and Contact Information

Young Han shares his entrepreneurial journey and the lessons he learned from failures. He discusses the importance of courage and vulnerability in starting a business and finding purpose through the concept of Ikigai. Young Han also talks about his experiences working at Starbucks, Apple, Phil's Coffee, and Limelight Health. He introduces the Owner's Manual Framework and the benefits of joining Owner's Club. The conversation highlights the significance of supportive communities and the Girl Dad Show. Young Han emphasizes the value of networking and learning from others.

Takeaways

 - Starting a business requires courage and vulnerability, as it involves showcasing oneself to the world and taking a leap of faith.

 - Failures can be valuable learning experiences that teach humility, resilience, and the importance of hard skills.

 - Surrounding oneself with supportive communities and like-minded individuals can lead to personal and professional growth.

 - The Owner's Manual Framework, developed by Young Han, provides a system for running businesses effectively and achieving success.

 - Networking and building relationships with others in the industry can be instrumental in business growth and personal development.

Chapters

00:00
Introduction and Technical Difficulties

01:16
The Joy of Promoting Owners Club

03:02
The Courage and Vulnerability of Starting a Business

04:50
Discovering Ikigai and Finding Purpose

06:27
Young Han's Entrepreneurial Journey

11:36
Lessons Learned from Failures

15:28
Working at Starbucks and Apple

17:46
Working at Phil's Coffee and Limelight Health

20:06
The Owner's Manual Framework

21:20
Joining Owner's Club

25:22
The Importance of Supportive Communities

28:13
The Girl Dad Show and Networking

31:52
Where to Find Young Han

To find out more about Young Han and Owner's Club visit his website: 

 www.owners.club

In this podcast episode, we discuss two topics related to sales tax filing and notices. The first topic revolves around what to do if a business has had zero sales. We emphasize that regardless of sales volume, registered taxpayers are required to file returns. Failure to file can lead to penalties, even for zero sales.

The second topic we discuss focuses on handling notices from tax authorities, especially in cases where businesses receive notices despite filing returns correctly. We stress the importance of not ignoring these notices. Even if the business has filed on time, states might issue automated notices due to various reasons like processing delays. Ignoring notices can lead to complications and additional penalties.

We then share insights on how to address notices, including providing necessary documentation and communicating with tax authorities promptly. We also touch on occasional filing statuses in certain states, where businesses only file returns when tax is due. Throughout the discussion, we emphasize the significance of proactive communication with tax authorities and not disregarding any notices, even for zero sales, to maintain compliance and avoid unnecessary penalties.

If you would like to submit a notice to try and stump us sent it to info@peisnerjohnson.com

On this episode of the SALTcast, We discuss a controversial issue regarding Massachusetts attempting to retroactively collect sales tax from out-of-state retailers. They delve into the background of the problem, detailing how certain states passed legislation in 2017 in anticipation of the Wayfair decision, hoping to require out-of-state sellers to collect sales tax. Following the Supreme Court's decision in 2018, several states, including Massachusetts, sought to enforce these laws retroactively, leading to legal challenges from companies. The Jason and Paul express their concerns about the fairness and constitutionality of this approach, highlighting the complexities and potential financial implications for businesses. They also touch upon Massachusetts' creative methods to increase tax revenues, including taxing digital products and intangibles, and ponder the possibility of affected companies receiving refunds if the legal challenges succeed. 

If you would like assistance in sales tax compliance please visit us here: https://peisnerjohnson.com/whats-next/

Exploring Peisner Johnson's Values and Purpose

• Jason has been with Peisner Johnson for over 25 years.
• Jason explains his journey at the company and how his "why" has evolved over time.
• The core value of "we over me" is discussed, emphasizing building relationships over transactions.
• The importance of helping people and providing peace of mind regarding sales tax issues is highlighted.
• Danny shares his experience and how Peisner Johnson assists businesses in managing sales tax complexities.
• The concept that sales tax can affect various aspects of a business and individual well-being is emphasized.

Collaboration and Confidence Building

• The principle of "collaboration builds confidence" is introduced.
• Jason talks about how collaborating with trusted individuals enhances decision-making and confidence.
• The "What's Next Calls" are explained as free consultations to educate and provide confidence to clients.
• Danny shares an example of how collaboration and informed decision-making helped a complex business situation.
• Finding the intersection between perfect compliance and practicality is emphasized.
• The value of information and sales tax consulting in providing peace of mind is discussed.

Authenticity and Abundance Mentality

• The authenticity of Peisner Johnson's approach is highlighted.
• We emphasize our commitment to helping people over a transaction-focused approach.
• An abundance mentality is discussed, focusing on the belief that helping others will ultimately benefit the company.
• The impact of Peisner Johnson's services on businesses and individuals facing sales tax challenges is emphasized.

You can learn more about us by visiting our website https://www.peisnerjohnson.com/

In this podcast episode, Paul Johnson and Ryan Johnson discuss the complexities of resale certificates and sales tax regulations across different states. They highlight the variations in rules and requirements, emphasizing the importance of understanding the specific regulations in each state. The conversation covers topics such as when and how to issue resale certificates, the significance of nexus, and the potential challenges faced by drop shippers. Paul and Ryan also mention the need for businesses to stay organized and up-to-date with resale certificates to avoid compliance issues. They caution against accepting incomplete or invalid certificates and stress the importance of collaboration and seeking professional advice when navigating these complexities.

As we discussed in the episode here is the Multi-Jursidictional Resale Certificate link: https://www.mtc.gov/wp-content/uploads/2023/01/Unif-Resale-Cert-revised-10-14-22.pdf

In this podcast episode, we discuss the complexities of rentals and leases, particularly in relation to sales tax. We cover various aspects of this topic, including different types of rentals (e.g., property, clothing, cars), the complexities of sales tax laws across different states, and the unique considerations for lessors.

Key points discussed include:

1. The variety of rentals and leases, from short-term to long-term, and the different tax implications they may have.
2. The complexity of sales tax laws in different states, including the options for lessors to pay tax upfront or based on lease flow or payments.
3. Different types of leases, such as financing leases and capital leases, and how they can affect tax obligations.
4. The importance of understanding property tax for lessors and how it relates to their inventory of leased items.

We emphasize the need for businesses to be aware of their tax obligations when engaging in rentals and leases, including considering physical nexus, the base for tax calculation, and the specific tax rates in different states. They also touch on the issue of double taxation in vehicle leasing and private party transactions.

Overall, the podcast highlights the complexity of rental and lease taxation, with a focus on providing valuable insights and considerations for businesses. We encourage listeners to schedule a "What's Next Call" for personalized guidance on their specific tax situations.

Navigating the ever-changing landscape of sales tax compliance can be a challenging endeavor for businesses. As sales patterns evolve and business circumstances change, it's crucial to stay on top of your sales tax obligations, even when you no longer meet the criteria for nexus. This is where Peisner Johnson comes in. With expert guidance and a personalized approach, Peisner Johnson can assist you in understanding and managing trailing nexus, ensuring your compliance with sales tax laws.

Here are some questions we cover in this episode:

What is Trailing Nexus?

How Long Does Trailing Nexus Last?

When Can I Cancel My Sales Tax Registration?

What About Online Sellers?

How Do I Know If My Business Has Trailing Nexus?


If you have questions regarding your business and whether or not you should be register let's chat here: https://www.peisnerjohnson.com/whats-next/

In this podcast episode we, Ryan Johnson, Danny Wright, and Paul Johnson discuss the compliance requirements for non-US businesses operating in the United States. The conversation touches on various aspects related to tax compliance, especially for foreign sellers. We delve into the concept of nexus, which triggers a business's obligation to collect and remit sales tax in a state. We discuss potential roadblocks and challenges foreign businesses may face when trying to become compliant in the US.

While foreign businesses don't necessarily need to set up an LLC or a corporation within a US state to establish tax compliance, having a US bank account could be necessary to facilitate transactions and payments to the states. We highlight scenarios where a foreign business might want to set up a US entity, such as when dealing with suppliers or vendors that require it for partnership purposes.

Our conversation emphasizes the importance of understanding the practical implications of compliance, including administrative burdens and costs. We share real-life examples of situations where foreign businesses had to deal with compliance issues, including the complexities of managing sales tax exemptions, working with vendors, and dealing with state audits. We offer insights and solutions to help foreign businesses navigate these challenges and find the best path to compliance.

If you are a business that is located outside of the United States but are running into sales tax compliance issues you can schedule a call with us here: https://www.peisnerjohnson.com/whats-next/

Just about a year ago Colorado implemented their "Retail Delivery Fee." Now with Minnesota ready to implement their own retail delivery fee we ask the question, "where does this end?" The other question we have is, do states really have the authority to impose this fee on businesses? We explore these and other questions in Today's episode.

If you have questions about proper compliance to this fee or other sales tax related questions do not hesitate to reach out to us by booking a call with us here. https://www.peisnerjohnson.com/whats-next/

Diane L. Yetter (www.linkedin.com/in/dianeyetter) is the “Sales Tax Nerd ® ”. She is a strategist, advisor, speaker, and author in the field of sales and use tax. She is the president and founder of YETTER Tax, a sales tax consulting and tax technology firm. She is also the founder of The Sales Tax Institute.

Diane works with clients of all sizes and in a myriad of industries to deliver sales tax services ranging from tax technology to tax policy, planning, and training. She also regularly partners with other advisors to help them serve their clients.

As a speaker, Diane is frequently asked to present to industry groups concerning sales and use tax issues. As an author, Diane regularly contributes to various publications and has published three books and numerous articles concerning sales and use tax issues. She is also the author of the US Sales Tax Chapter for the IBFD VAT Worldwide Research Database. Diane was invited to testify before the Senate Committee on Finance regarding the impact of the Wayfair decision on small businesses and remote sellers. She has also appeared as an expert witness in legal matters and litigations.

Diane was named in Accounting Today’s 100 Most Influential People in Accounting eight times between 2011 and 2022. As an entrepreneur, she was honored as Woman Business Owner of the Year 2020 by the National Association of Women Business Owners (NAWBO) Chicago Chapter. Her Twitter handle @SalesTaxInst has been one of Forbes’s Top 100 Tax Twitter Handles and @YetterTax is in the Accounting social media leaders. She also sits on the Avalara Accounting Meta Influencers Roundtable.

Diane earned a BS in accounting and business administration from the University of Kansas in 1985 and a MS in taxation from DePaul University in 1994. Prior to founding the company, Diane was a state and local tax manager in the Chicago office of Arthur Andersen LLP, the sales and use tax director for the Quaker Oats Company, and a sales and use tax auditor for the Kansas Department of Revenue.

As announced during the podcast, The Sales Tax Institute would love to offer a 10% discount to the SALTcast community to join the Sales Tax Nerd Community. To find out more about the Community please visit https://www.salestaxinstitute.com/sales-tax-education/sales-tax-nerd-community-membership and if you want to join, enter discount code SALTcast10 on the order form to receive 10% off.

When it comes to helping your clients with sales tax, you may find yourself looking for direction and answers. What better people to turn to than the “Sales Tax People”? Here are the top 6 benefits you will find partnering with Peisner Johnson.

 Since July 2018, the landscape of sales tax has changed drastically. The United States Supreme Court ruled in favor of South Dakota v. Wayfair. With that, companies across the country saw their nexus footprint change. Every state started looking less at where businesses operate from a physical standpoint and more on where customers are located and where products and services are being sold to.

Picture this. You're strolling through the labyrinth of sales tax laws in the United States, and suddenly you come across five states that hit like a cool breeze on a hot summer day: the NOMAD states.

These states, devotedly referred to as NOMAD (New Hampshire, Oregon, Montana, Alaska, and Delaware), have something unique to offer—they don't impose any state sales tax. You read that right, no state sales tax. It's like a dream come true, giving you a reason to rest easy at night.

However, before you become too complacent, keep in mind that there are always nuances to consider when it comes to sales tax. While these NOMAD states may not impose state-wide sales tax, it's crucial to remember that the government still requires revenue to maintain smooth operations.

So, where does this revenue come from? The NOMAD states have their own compensatory methods for the lack of state sales tax revenue. They frequently depend on higher business, income, or excise taxes compared to states with a state sales tax. And then there are local jurisdictional sales tax nuances to be aware of.

To ensure clarity, let's delve a little deeper into these states and their unique tax structures.

Studies show that most companies aren’t happy with their current sales tax process. It doesn’t have to be like that. You can have an exceptional experience with outsourcing your sales tax process and we can prove it. Here are the top benefits of choosing Peisner Johnson.

Our Core Beliefs 
“We over me.”
We believe when you help others, you help yourself. This has driven us to keep a ‘We over Me’ mentality across everything we do. This makes the work we do more than just figuring out sales taxes. We are here to help you, however that may be. We understand the inevitable nature of sales taxes and ultimately, we want you to have the peace of mind that comes from knowing what your options are.

Managing sales and use tax obligations is no easy task. It requires careful attention to detail, a deep understanding of complex rules and regulations, and a significant investment of time and resources. Yet, despite the challenges, many businesses continue to handle these obligations in-house. In fact, most companies still manage various aspects of sales tax internally.

So, why do businesses choose to shoulder this burden themselves? There are several reasons, ranging from a lack of trust in external partners to a desire to maintain control over critical financial processes. However, it's essential to recognize that the right sales tax compliance experts can alleviate these concerns and become trusted partners, reducing risk and liability.

But first things first. Let’s talk about what sales tax compliance is. 

Have you ever noticed how sometimes we hear a phrase so often that we don't really think about what it means? "Sales and use tax" is one of those phrases that we've probably all heard before, but have you ever stopped to think about what "use tax" actually means? While most of us are familiar with "sales" tax, "use" tax is a concept that often gets overlooked or misunderstood.

Let's take a moment to give "use tax" the attention it deserves and learn more about it.

What is Use Tax?
Use tax is officially defined as the tax on the use, consumption, or storage of a taxable item or service on which no sales tax has been paid. It is required to be paid by the consumer in cases where the seller does not collect sales tax. 

How Use Tax Works
The use tax is a form of taxation that applies to specific goods and is charged by a consumer's home municipality or state. Unlike sales tax, which is typically applied to all goods and services, the use tax is only charged under certain circumstances.

Here are some common instances where use tax is charged.

• When a buyer purchases goods from an out-of-state seller who does not charge a sales tax.
• If you're a professional and you buy goods for your trade in an area where sales tax doesn't apply but you plan to use those goods in an area where sales tax is charged, you might be responsible for paying a use tax.
• If a buyer purchases items from a seller outside of their home jurisdiction and the seller doesn't charge sales tax, the use tax may be charged if the customer intends to use or store the goods in an area where sales tax is applicable.

Use tax is a complementary tax; it’s not charged if sales tax is charged. The use tax rate is typically the same as the local sales tax rate, but this also varies per state. It is left up to consumers to calculate and pay use taxes, which makes it challenging to enforce. However, a resident who does not pay use tax may be subject to fines, interest, and penalties.

As a business owner, it's crucial to know your nexus and taxability requirements to avoid running afoul of sales tax laws. Knowing your nexus is crucial because not registering or collecting sales tax when required can result in tax out of your own pocket with significant penalties and interest charges. You must also be aware of the taxability of your products and services in each state where you have nexus. It's essential to understand what's subject to sales tax, what exemptions are available, and how to apply tax rates and rules correctly, but this can be challenging.

By having a solid grasp of your nexus and taxability requirements, you can avoid costly errors and remain compliant with sales tax laws. With the right knowledge and resources, you can confidently navigate the complexities of sales tax and protect your business's financial health. So let’s get started.

You know how stressful it can feel if you’ve received a formal letter with the news of an upcoming audit. So let’s talk about the next steps.
What is an audit?

An auditor goes into an audit with two things in mind.

They want to determine if your business has collected and remitted the proper sales tax amounts from your customers.

They want to verify that you’ve paid or self-assessed the correct amount of sales and use tax on the purchases you’ve made during the set audit period. (The set look-back period is typically 3-4 years, but the statute of limitations varies.) The purchases will include both operating expenses and fixed assets.

If you find yourself under audit now is a great time to get on a What's Next Call!: https://peisnerjohnson.com/whats-next/